Changes

Growth was an exceptional 6.2% in 2000, due in part to a number of one-time high tech acquisitions and investments. This exceptional year was followed by two years of negative growth of -0.9% and -1%, respectively, in 2001 and 2002. As a result of the security situation and the associated downturn in the economy, there was a significant rise in unemployment and wage erosion. This led to a decline in private consumption in 2002, the first time that there had been negative private consumption since the early 1980s. However, following growth rates of 1.7% in 2003 and 4.4% in 2004, the Israeli economy entered into a period of stabilization and recovery after the deep recession of 2001 and 2002. Since then, the Israeli economy seems to have returned to a trend of consistent growth. The Israeli economy grew by 5.2% in 2005 and GDP per capita (U.S. $17,800) increased by 3.3%. The Israeli economy grew by an estimated 4.8% in 2006.  

Growth was an exceptional 6.2% in 2000, due in part to a number of one-time high tech acquisitions and investments. This exceptional year was followed by two years of negative growth of -0.9% and -1%, respectively, in 2001 and 2002. As a result of the security situation and the associated downturn in the economy, there was a significant rise in unemployment and wage erosion. This led to a decline in private consumption in 2002, the first time that there had been negative private consumption since the early 1980s. However, following growth rates of 1.7% in 2003 and 4.4% in 2004, the Israeli economy entered into a period of stabilization and recovery after the deep recession of 2001 and 2002. Since then, the Israeli economy seems to have returned to a trend of consistent growth. The Israeli economy grew by 5.2% in 2005 and GDP per capita (U.S. $17,800) increased by 3.3%. The Israeli economy grew by an estimated 4.8% in 2006.  

Exports of goods and services in Israel grew by 7% in 2005. Service and agricultural exports each increased by more than 10% in 2005, whereas exports increased by 5.6% and imports rose to 4.4%. Tourism revenues increased by 22.7% as a result of the dramatic increase following the intifada's subsidence.  

Exports of goods and services in Israel grew by 7% in 2005. Service and agricultural exports each increased by more than 10% in 2005, whereas exports increased by 5.6% and imports rose to 4.4%. [[Israel Tourism]] revenues increased by 22.7% as a result of the dramatic increase following the intifada's subsidence.  

Israel's private consumption increased by 4% in 2005. The largest growth in private consumption was in the purchase of clothing, footwear, and personal effects, which increased by 10.2%, following an increase of 5.4% in 2004. Consumption of consumer durables grew much more slowly than in 2004, with an increase of only 3.4%, compared with 14.3% the previous year.  

Israel's private consumption increased by 4% in 2005. The largest growth in private consumption was in the purchase of clothing, footwear, and personal effects, which increased by 10.2%, following an increase of 5.4% in 2004. Consumption of consumer durables grew much more slowly than in 2004, with an increase of only 3.4%, compared with 14.3% the previous year.  

The United States is Israel's largest trading partner. In 2005, two-way trade totaled some $26.6 billion, up 12% from 2004. The U.S. trade deficit with Israel was $7.1 billion in 2005, up 33% from 2004, due largely to rising Israeli exports to the U.S. U.S. exports to Israel rose 6.1% in 2005 to $9.7 billion, making Israel our 19th largest export market for goods. The principal goods exported from the U.S. include civilian aircraft parts, telecommunications equipment, semiconductors, civilian aircraft, electrical apparatus, and computer accessories. Israel's chief exports to the U.S. include diamonds, pharmaceutical preparations, telecommunications equipment, medicinal equipment, electrical apparatus, and cotton apparel. The two countries signed a free trade agreement (FTA) in 1985 that progressively eliminated tariffs on most goods traded between the two countries over the following 10 years. An agricultural trade accord signed in November 1996 addressed the remaining goods not covered in the FTA but has not entirely erased barriers to trade in the agricultural sector. Israel also has trade and cooperation agreements in place with the European Union, Canada, Mexico, and other countries.  

The United States is Israel's largest trading partner. In 2005, two-way trade totaled some $26.6 billion, up 12% from 2004. The U.S. trade deficit with Israel was $7.1 billion in 2005, up 33% from 2004, due largely to rising Israeli exports to the U.S. U.S. exports to Israel rose 6.1% in 2005 to $9.7 billion, making Israel our 19th largest export market for goods. The principal goods exported from the U.S. include civilian aircraft parts, telecommunications equipment, semiconductors, civilian aircraft, electrical apparatus, and computer accessories. Israel's chief exports to the U.S. include diamonds, pharmaceutical preparations, telecommunications equipment, medicinal equipment, electrical apparatus, and cotton apparel. The two countries signed a free trade agreement (FTA) in 1985 that progressively eliminated tariffs on most goods traded between the two countries over the following 10 years. An agricultural trade accord signed in November 1996 addressed the remaining goods not covered in the FTA but has not entirely erased barriers to trade in the agricultural sector. Israel also has trade and cooperation agreements in place with the European Union, Canada, Mexico, and other countries.  

Best prospect industry sectors in Israel for U.S. exporters are electricity and gas equipment, defense equipment, medical instruments and disposable products, industrial chemicals, telecommunication equipment, electronic components, building materials/construction industries (DIY and infrastructure), safety and security equipment and services, non-prescription drugs, travel and tourism services, and computer software.  

Best prospect industry sectors in Israel for U.S. exporters are electricity and gas equipment, defense equipment, medical instruments and disposable products, industrial chemicals, telecommunication equipment, electronic components, building materials/construction industries (DIY and infrastructure), safety and security equipment and services, non-prescription drugs, travel and tourism services, and computer software.

==History==

==History==